Date:30/08/2008 URL: http://www.thehindubusinessline.com/2008/08/30/stories/2008083052031500.htm

Back Markets this week

The markets opened higher on positive global sentiment on Monday, and there was buying momentum throughout the session. Towards the close, profit-booking pared most of the gains. The Sensex rose 48.86 points to end at 14,450.35.

S&P launched S&P India Select Index, designed to provide global investors tradable exposure to the Indian equity markets. The index comprises 60 leading companies that have sufficient liquidity, with a maximum of 10 per cent weightage.

The MCX received in-principle approval from SEBI for launching currency futures through its newly-formed subsidiary MCX Stock Exchange Ltd.

Himalya International hit the 20 per cent upper circuit following news of its tie-up with Bharti Wal-Mart. The stock was trading at Rs 26.30, up Rs 4.35 or 19.82 per cent.

Infosys Technologies said it was buying the UK-based SAP consulting company Axon Group Plc for ś407.1 million or Rs 3,310 crore, in an all-cash deal. The stock received muted response from investors with uncertainty over US economy.

A weakening rupee pushed up information technology stocks on Tuesday. The IT index was up 7.87 per cent from a month ago and 0.08 per cent over the past week.

Jindal Photo surged on Wednesday following the board's approval for delisting of its shares from the BSE. The scrip touched an intraday high of Rs 161, a 20 per cent jump, but closed with a gain of 8.50 per cent at Rs 145.80.

Sun Pharma's proposal to acquire Taro Pharmaceutical received a shot in the arm, with the Tel-Aviv District Court rejecting Taro's contention of `special tender offer' under the Israeli law. However, the course is only partially clear, as Taro could appeal to Israel's Supreme Court. The stock was subdued with little change at Rs 1,480.

Tech Mahindra has seen a lot of buying activity on the bourses with a gain of 8.34 per cent in the last one month on reports that the UK-based telecommunication major BT is all set to relinquish some part of its holding in the company.

After trading in a narrow range, the markets saw a sharp correction in the last hour of trade on the F&O expiry day on Thursday. Coupled with inflation worry, the Sensex closed with a loss of 250 points to finish at 14050.

Lack of clarity on the pricing issue of Reliance Industries' proposal to transfer 80 per cent stake in its KG-basin oil and gas assets to four other wholly owned subsidiaries, affected the sentiment. The RIL stock came under selling pressure to close the day at Rs 2,074.

The rally in global equity markets, fall in oil prices, lower domestic inflation data and better GDP growth rate set the Indian stock markets afire on Friday. The bulls took the reins and decimated the till now dominant bears. On Friday, the Sensex opened with a gain of 240 points, and went on to scale new peaks to hit a high of 14580 before finishing the day with a gain of 520 points.

Compiled by B L Sudarsan

Podcast by R Venkatesan